Amplify Your Dealership Technology to Add Profit, Not People

Faced with ongoing margin compression and changing customer expectations, auto dealers are working hard to find new ways to create process efficiencies to grow their bottom lines and deliver great customer experiences. The good news is that your store can accomplish these goals without hiring more people or purchasing more technology. The key is to maximize the technology and data you already have to increase employee productivity and dealership revenue.

It’s widely understood that technology can help create efficiency, yet many systems are underutilized. With a few tweaks, dealerships can garner substantial results. Focus efforts on the following.

Master Your Dealership’s CRM

Your Customer Relationship Management system is the hub for all customer interactions but much of its power is never unlocked. If you’re using it as a stand-alone solution to house customer data, you’re missing out on its potential to integrate business operations, create process efficiencies, and deliver streamlined customer experiences.

Integration with key tools including your digital retail solution, desking, F&I and e-contracting enables seamless data flow from deal start to deal completion, which means you can

• Increase employee productivity
• Reduce data re-entry errors
• Speed up the buying process for customers

These integrations will also make the CRM easier for employees to use meaning selling — and buying — cars will be easier.

Along with integrations, double down and master advanced features to help evaluate your team’s performance. This will allow you to spot and fix problems before they cost money. Use data and reports to leverage your current processes, sales team and customer contacts to improve productivity without paying for leads or new hires. Lean on your CRM provider for tips and suggestions on how to maximize utilization.

Expand Data Mining

Most dealerships are familiar with equity mining to identify existing customers in a position to trade up into a new vehicle. Equity mining efforts should be ongoing but can be supplemented with other data mining strategies. For example, the data in your CRM can be used to sharpen your marketing strategies, spot service opportunities, upsell F&I products, and more.

Think outside the box when it comes to data mining, and you’ll develop a strong strategy to combat margin compression. When you pull customers back into your service drive, or re-introduce and sell a protection product, you’ll add revenue to your bottom line and also boost customer retention.

Thanks to artificial intelligence and predictive analytics, you can quickly automate data into efficient and tailored lists to pivot marketing and sales efforts. The best tools are backed by proactive support so ask your vendor for help when you need it.

Digitize Your Paper Trail

Even the simplest car purchase requires multiple forms and signatures. Digitize your paper trail from deal start to finish in order to cut costs associated with paper documents and reduce rekeying errors.

A digital retail platform that your staff uses in store is an efficient way to eliminate some of the paper required for a purchase. Buyers can move easily from selecting a vehicle to electronically signing documents — at home, in store or a combination of both.

The F&I department is another area that often drowns in paperwork. Modernize your process with digital solutions including digital deal jackets, e-signatures and digital document hosting. If you haven’t asked your vendor if these options are available, there’s no time to waste. Digitization can help keep your F&I department organized so you can close more deals efficiently.

Combat margin compression and grow revenue without buying more technology or hiring more people to provide a modern, successful dealership experience. Make it a goal to maximize the tech you already have to create process efficiencies that benefit employees, customers and your bottom line.